Abu Dhabi Exports Office (ADEX), the export finance arm of the Abu Dhabi Fund for Development, signed a $30 million line-of-credit agreement with the Eastern and Southern African Trade and Development Bank (TDB) to bolster trade between the UAE and the financial institution’s member states.
As part of the deal, ADEX will provide loans through the bank to buyers and importers from the lender’s member states to purchase goods and services from the UAE, the export finance agency said in a statement Monday.
The partnership, which is the first of its kind to be signed by ADEX with a foreign financial institution, is expected to support both exporters and importers at a time the global economy faces challenges due to the COVID-19 pandemic.
Saeed Al Dhaheri, acting director general of ADEX, said that it was a difficult time for both UAE exporters and their overseas buyers. “Both are dealing with liquidity and cash flow issues, delayed supplier payments and limited access to financing. Through our partnership with TDB, we intend to provide a solution to these challenges that enables both the exporter and importer to fund mutually beneficial transactions quickly and easily,” he added.
The parties also signed a cooperation agreement to boost business and trade between the UAE and Africa. In that context, TDB and ADEX will explore possibilities to co-finance qualifying transactions and establish additional lines of credit.
ADEX was set up to provide loans and credit guarantees to foreign importers of non-crude sector goods and services from UAE companies.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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